Bizjet Market Outlook Cloudy, Says Industry Analyst

New business jet deliveries are expected to climb this year, though sales are projected to be more sluggish as world economies slow and recession risk rises, JetNet iQ managing director Rolland Vincent said this morning at the NBAA Business Aircraft Finance, Registration, and Legal Conference in Fort Myers, Florida. “We expect orders to soften this year,” he said, citing low oil prices, higher interest rates, the Brexit “fiasco,” waning U.S. tax reform effects, and tariff battles. “Market optimism is also coming off its peak in mid-2018.”

On the preowned side, Vincent said the lack of younger inventory will stymie sales this year, though trade-ins from operators upgrading to newly available models could somewhat alleviate this inventory shortage. Guardian Jet managing director Don Dwyer agreed, adding that demand for high-quality preowned jets remains strong. “Good airplanes don’t stay on the market long,” he said. “The absorption rate for many younger jet models has gone from two years to six months, prompting us to source foreign aircraft now.”

Meanwhile, the average fleet age is increasing “dramatically” as operators hold onto their aircraft longer—a behavior change resulting from the Great Recession, said Vincent. “We’re no longer in a five-year replacement cycle. Operators are now comfortable flying business aircraft that are more than 10 years old. We see no change in this behavior for a generation.”

Canada TSB Begins Special Study of Air-taxi Safety

Canada’s Transportation Safety Board (TSB) has launched a special study of air-taxi operations following its collection of data that shows over the last 15 years, the segment has seen 813 accidents resulting in 242 fatalities (an average of 16.1 annually) and 162 serious injuries. These deaths represent 62 percent of all commercial aviation fatalities.

In Canada, air taxis are regulated under Part 703 and cover piston- and turboprop-powered airplanes and helicopters only. Jet-powered aircraft cannot be operated as air taxis. As such, they are not included in Canada’s air-taxi accident statistics. On-demand charter operations in Canada are operated under Part 704 commuter regulations.

The TSB said its investigation reports have repeatedly drawn attention to critical safety issues that contribute to air-taxi accidents. “In spite of this, the air-taxi sector continues to have the highest number of commercial aviation accidents and fatalities.” To identify and communicate the underlying systemic safety issues that need to be addressed, the TSB has launched a special investigation into the industry. TSB statistics show that of the 183 airplane fatalities, 48 occurred in turboprop accidents and 135 in accidents involving reciprocating-engine aircraft. In total, turboprops suffered 133 accidents and recips 411 mishaps.

“If we uncover serious safety deficiencies during the course of our investigation, we will not wait until the public report to make them known,” the TSB said.

NetJets Gains Traction, FSI Stumbles in Earnings

Coming off a solid 2017 with improved flight hours and increased aircraft management services returns, fractional ownership provider NetJets pulled in stronger earnings again in 2018, parent company Berkshire Hathaway reported. While Berkshire Hathaway doesn’t break down specifics of individual performance, it did say that the NetJets performance helped boost its Services Group results in 2018, overall. The Services Group comprises a variety of companies from training specialist FlightSafety International (FSI) to Dairy Queen, Cort Leasing, media companies, electronic components (TTI), and third-party logistics providers, among others.

The group’s earnings for the year jumped 20.9 percent to $1.8 billion. The bulk of the $317 million increase came from TTI. However, these gains offset a decline in earnings from fellow aviation company FSI, which faced reduced margins from sales of flight simulators and impairment charges of $41 million related to certain fixed assets, Berkshire Hathaway reported. FSI also had lower earnings in 2017, the parent company added.

FAA Moving Forward with En Route Expansion of Data Comm

The White House’s request for $136 million of its Data Communications (Data Comm) program in Fiscal Year 2020 comes as the FAA prepares for the rollout of the technology at nation’s air route traffic control centers (ARTCC). Data Comm provides a means for air traffic controllers and pilots to communicate digitally.

The agency completed deployment of the technology at 55 airports in 2016, two and a half years ahead of schedule. With the cost-saving produced from that deployment, the agency expanded to seven more airports last year, again more than a year ahead of schedule. The FAA had set a goal of having 1,900 aircraft participating this year. By the end of 2018, some 5,800 aircraft were participating, primarily airliners. However, the agency had counted 43 business jet operators among those who had equipped. By the end of 2018, 50,000 communications were being transmitted weekly.

The next phase is looking to the en route environment, and the FAA said testing is underway at ARTCCs. Deployment is anticipated and initial services are expected to be in place by 2020, with full en route services anticipated by 2022. Once complete, the FAA said, it will look toward future NextGen capabilities for technology.

Cargo UAS Builder Sabrewing Signs $43M Alaska Deal

Unmanned aircraft builder Sabrewing has signed a 10-aircraft, $43 million deal with Alaska’s Aleut Community of St. Paul Island (ACSPI) to deliver a mix of its Rhaegal and Wyvern cargo aircraft. As part of the agreement, the ACSPI is creating the largest aircraft test range on the Bering Sea centered about the island. Sabrewing will provide equipment and training to allow the ACSPI to operate the test range complex, known as the St. Paul eXperimental Test Range (SPxTR) Complex (“Spectre Complex”).  

Sabrewing will use SPxTR to conduct research, development, and FAA certification qualification on its aircraft designs. Sabrewing will also provide the test equipment, telemetry, and remote operations and telemetry stations to allow the ACSPI to operate the test complex for other customers besides Sabrewing. 

Sabrewing and ACSPI are creating a joint-venture corporation to provide UAV pilot, maintenance, and dispatcher training, and aircraft replacement and spare parts. The joint venture provides a vehicle for military and government contracting and to bid on Defense Department contracts directly. Sabrewing will build and sell (or lease) its cargo aircraft to commercial customers, and the joint venture will train the aircraft’s remote operators, mechanics, and dispatchers.

Quest Appoints South-central U.S. Kodiak Dealer

Quest Aircraft named Texas-based American Kodiak an authorized dealer for the Kodiak single-engine turboprop in Arkansas, Kansas, Missouri, Nebraska, Oklahoma, and Texas, the Sandpoint, Idaho airframer announced March 1­­4. “Our confidence in American Kodiak to represent the Kodiak throughout this active aviation region could not be higher,” said John Hunt, Quest v-p of sales for North, Central, and South America.

American Kodiak, which has offices in Denton and Fort Worth, Texas, is led by Texas and Colorado rancher and real estate developer Gregory Brown, along with Phil Jordan, Chad Collins, and Herb Knight. “The Kodiak is such a versatile product, and I firmly believe its flexibility will ensure remarkable success,” Brown said. “We anticipate it will be well received in multiple active industries here, ranging from agricultural, oil, and construction applications, over to the corporate and private-use markets as well.”

Quest said the Kodiak fleet totals more than 250, and the aircraft is certified in more than 55 countries. The 10-seat airplane powered by a Pratt & Whitney PT6A-34 turbine engine has the ability to take off under 1,000 feet on unimproved surfaces at a full gross takeoff weight of 7,225 pounds. 

Qatar Executive Expands European Destinations

Qatar Executive has completed the certifications and crew training to fly to three mountainous European airports, the private jet charter division of Qatar Airways Group has announced. Following full simulator training and certifications, the charter operator can now fly to Samedan, Switzerland (SMV); Chambery, France (CMF); and Innsbruck, Austria (INN).

“Qatar Executive has enhanced its investment in additional crew training for our modern state-of-the-art fleet to serve these unique destinations,” Qatar executive v-p Ettore Rodaro said. “Along with our strong commitment to safety and quality service, Qatar Executive is committed to constantly improving its product offering.”

Its fleet currently comprises 15 jets: five Gulfstream G650ERs, two G500s, three Bombardier Challenger 605s, four Global 5000s, and one Global XRS. This year it plans to add five G500s and one G650ER to its fleet. It received its first G500s—the newest model in Qatar Executive’s fleet—in December.

Weston To Take Helm of BACA

BACA – The Air Charter Association elected Nick Weston to serve as its next chairman. Weston, who was named to the new role during a meeting of the BACA Council at the Baltic Exchange on March 14, succeeds Richard Mumford, who has steered the group since 2016.

CEO of the aviation services company Weston Aviation, Weston is stepping into the leadership spot after having been a member of the association for nearly 25 years and serving both as a council member and deputy chairman. He noted that he is taking the reins following a period of growth in membership and services under Mumford’s leadership.

“It is thanks to [Mumford’s] dedication that the association is where it is today, and with the continued support of the council and our members, I am very much looking forward to taking BACA—The Air Charter Association—to the next level and beyond,” he said.

“I am proud to have served the association as chairman for the past three years,” Mumford said. “During that period, we have driven an ambitious program of development that has helped transform and modernize the association tremendously.”

Noting the association is celebrating its 70th anniversary, Mumford added, “I can think of no better person to take up leadership of the next phase in BACA’s life than Nick Weston.” 

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